Business reporter

Property developer Mark Letten has been sentenced to 5 years and 8 months' jail for operating what a judge described as the "Titanic" of unregistered investment schemes, worth $100 million.

Letten, 60, of South Yarra, appeared in the Victorian County Court on Thursday over 27 charges relating to his operation of the 21 schemes over a 10-year period.

Letten managed the schemes through a number of companies including LGH Holdings. He used investors' money to buy development properties across Victoria, New South Wales, Queensland and New Zealand.

The schemes were wound up by the regulator in 2010, costing investors $67 million.

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Letten pleaded guilty to the charges in January, which included 21 charges of running unregistered schemes, one charge of running a financial services business without a licence and five charges of dishonestly using his position for his own advantage.

In his sentencing remarks, Judge Michael McInerney described Letten's property empire as an "economic shamble or shemozzle that was doomed to failure".

"This whole enterprise, which was overseen by Mr Letten, had more severe structural defects than the Titanic," he said.

"Like the Titanic, it sank ignominiously".

He criticised Letten's arrogance and grossly inadequate accounting practices, saying he had gravely breached his fiducial duties by pooling funds and failing to register the schemes.

Letten's legal team argued the schemes had collapsed in part due to the global financial crisis, which plunged the assets of the schemes into receivership.

The Australian Securities and Investments Commission, which launched proceedings against Letten in 2010, said he acted in complete disregard for the law and with little concern for the interests of investors.

"It is tragic that Mr Letten's complete breach of trust resulted in such significant monetary losses to the investors as well as the non-monetary damage they have also suffered," chairman Greg Medcraft said.

"His jailing should send a strong message to company directors and scheme operators about the serious consequences of operating property investment schemes outside the legal requirements."